I agree this most likely has nothing to do with the TX deal. I certainly hope not, since it shows clearly that other BIG NAMES are very interested in the RNTK technology. This project alone gives considerably MORE credibility to RNTK. If the project demonstrates cost savings over state of the art GTL, we could be off to the races even without the TX deal.
Also of note is that the project is very brief and will be finished in 16 weeks. This leads to the conclusion that there will not be significant cost expenditures (thanks to Howard Williams for this insight).
Also of interest are the following:
>>Upon successful completion of the Project, Rentech has the right to receive a nonexclusive license to use the TCC plasma technology and to receive a portion of any future license fees and royalties received by TCC for use of their plasma technology in any other GTL projects. TCC will provide the plasma system and receive throughput fees on syngas produced by its plasma system when used with any GTL process including Rentech's. <<
As I read this, RNTK will receive a part of ANY future license fees and/or royalties received by TCC for use of this technology in ANY other GTL projects. Does anyone have any ideas why TCC would make a deal which could be so lucrative for RNTK?
>>"Rentech is very excited about the opportunity presented to it by TCC and its president, Dr. Edward Bohn. Successful demonstration of the TCC system could provide for the reduction in the cost of GTL development making Rentech's GTL process even more competitive as an alternative oil and gas technology in the future. Further, it could provide a cost-effective solution for barge mounted GTL processes. Use of the TCC system, as the first step in the Rentech process, could be implemented as part of the overall GTL process, to convert natural gas produced on remote off-shore platforms into clean liquid hydrocarbons on a cost effective basis that previously might not have been possible," stated Dennis L. Yakobson, President and CEO of Rentech. <<
This was worth reposting. We are looking at overall GTL cost reductions (on which RNTK would get royalties no matter WHO was using the process), as well as barge mounted and offshore platform solutions, on which RNTK would get a portion of all royalties, no matter WHO used the process.
IMO, this could be very large. There remain of course many unknowns. But what I find most interesting is that these big names and big money came to little RNTK with such a lucrative offer--RNTK is clearly doing something right, even if the stock price does not reflect it. |
